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Amazon MP3 has the only digital music catalogue that offers DRM-free tunes from all four major labels, with around 3.3 million tracks in the library, they are packing some weight. If that fact doesn't have Apple quaking in their boots, the competitive pricing should. We couldn't care less how Amazon and Apple get down and dirty, but as they are bound to be set for a fight, teeth gnashing and all, it can only mean good things for customers. DRM-free music will have a bigger global presence, and that should solidify its worth in the consumer market. Also, the ensuing price war is not going to be too bad either. After all, iTunes surely cannot keep their offerings priced above the competition, whilst simultaneously offering DRM gimped and comparatively expensive ($1.29), DRM-free tracks. It's about to get interesting—watch this space. [Amazon]

Warner Music Group, whose contract with Apple expires at year-end, is considering switching to a month-to-month deal with Apple, said a source with knowledge of the discussions who spoke on the condition of anonymity because no decision has been made.

The positioning is obvious to anyone who's watched the bloodbath of non-Apple music stores over the past few years. Urge was supposed to be Microsoft's darling, and the key to its Windows Media Player 11 and Vista music strategy. That is, until the new baby Zune came along and Urge was left playing in the road like a foster child. An article today in the Wall Street Journal said that the Verizon Wireless angle is also clear, since Apple "angered" many carriers by deciding to go exclusive with AT&T.

Regarding DRM-free music, Real chairman Rob Glazer said that the company started its trial of DRM-free tracks fro Universal today, but did not indicate if DRM-free music would ever be available for download to a cell phone.

As the Journal predicted, Urge's GM, Michael Bloom, will run the new company, and the Urge brand will cease to exist.

[WSJ]

Press Release:

MTV Networks, RealNetworks and Verizon Wireless Join Forces To Offer A New Integrated Digital Music Experience

NEW YORK - Aug. 21, 2007 - RealNetworks, Inc. (NASDAQ: RNWK), MTV Networks, a division of VIACOM International (NYSE: VIA.A and VIA.B), and Verizon Wireless, a joint venture of Verizon Communications (NYSE: VZ), and Vodafone (LSE: VOD) today announced they are teaming to create a single, integrated digital music experience that consumers can access via their PC, portable music device or mobile phone. Promising to be ultra-rich in music culture, programming and discovery, Rhapsody will unite the best of RealNetworks' market-leading service and MTV Networks critically acclaimed URGE music service. Verizon Wireless' V CAST Music -the most successful mobile music service in the country - will become the mobile platform for the integrated Rhapsody service.

As part of this alliance, MTV Networks and Real are forming a new company, Rhapsody America, whose offering will be the exclusive digital music service for Real and for MTV Networks' premier music and pop culture brands in the United States. Both partners will bring complementary strengths, including MTV Network's storied history in music programming, unparalleled connection with music fans, and youth marketing prowess, with Real's innovative technology, market momentum for Rhapsody, and deep relationships within the consumer electronics industry. Michael Bloom, previously General Manager of MTV Network's URGE, will lead Rhapsody America, which will have offices in New York, Seattle and San Francisco.

Real and MTV Networks, through their Rhapsody America venture, have formed a long-term, groundbreaking and exclusive relationship with Verizon Wireless, in which the companies will be partners in bringing consumers digital music to their PCs and over the air to their mobile phones. Through the relationship with Verizon Wireless, Rhapsody will be fully integrated with VCAST Music, delivering a superior music service across multiple consumer devices.
"With RealNetworks and Verizon Wireless, we're creating a unique and engaging experience that also reflects our own strategy of allowing fans to go narrow and deep into the musical genres they love," said Judy McGrath, Chairman and CEO of MTV Networks. "Any time we can partner with industry leaders like this to create a new music proposition, everyone wins, especially the audience."

"Today's announcements represent a sea-change in the digital music market," said Rob Glaser, chairman and CEO, RealNetworks. "By partnering with MTV Networks, home of the most storied brands in music history, and the market's leading wireless company, Verizon Wireless, we'll make Rhapsody the premier digital music service that delivers great music to millions of consumers whenever and wherever they want."

"By bringing together the cultural and musical heritage of the MTV Networks family with the functionality of Rhapsody and the reach of V CAST Music, it's like we've put the best lead singer, drummer and guitarist all on the same giant stage, allowing music fans to experience the purest music play in any way they want," said Van Toffler, President of MTV Networks Music & Logo Group. "The new Rhapsody will build on the musical curation of URGE and have the marketing power of MTV, VH1 and CMT behind it, ensuring this new platform is front and center in the hearts and minds of music lovers."

John Stratton, executive vice president and chief marketing officer of Verizon, said, "Our commitment to innovation and making V CAST Music the #1 mobile music service in the country has led to today's momentous announcement. Verizon's alignment with these two great companies - MTV Networks' music and youth marketing expertise with RealNetworks' acclaimed service and technology - promises to propel digital music into an exciting new future. Together, our three companies will provide a new, unbeatable digital music experience that will give every consumer a way to get music quickly and easily - whether sitting in front of a computer screen or on-the-go with a mobile device."

Real, MTV Networks and Verizon Wireless will leverage their complementary strengths to bring the new service to market and back it up with an aggressive advertising and promotional campaign. Verizon Wireless will market Rhapsody through its extensive network of Verizon Wireless Communications Stores nationwide when the service launches on mobile phones. Rhapsody will become the music service of choice across MTV Networks' MTV, VH1, and CMT brands and their myriad of online youth-culture touch points. On-air integration for the new service will begin next week and Rhapsody will also be integrated into the fabric of MTV's marquee event, the Video Music Awards airing live from Las Vegas on September 9th.

Customer Experience
Starting today, URGE customers can use their existing usernames and passwords to log in to Rhapsody and enjoy access to both services. In addition, Rhapsody customers can get their first taste of MTV Networks' rich programming from MTV, VH1 and CMT. Verizon Wireless customers can already download music instantly to their V CAST-enabled phones at any time and from anywhere in the V CAST service area and transfer digital music to their phones from their PC. In the months ahead, Verizon Wireless will roll out functionality that sends the duplicate copy of songs purchased over the air directly to a customer's Rhapsody account. The service will also allow transfer of subscription music from a Rhapsody account to a mobile phone.
Rhapsody will also continue to be offered through RealNetworks' extensive network of partners, including Best Buy, SanDisk and TiVo.

Press Teleconferences
Today's news was announced this morning at a press teleconference by executives from RealNetworks MTV Networks and Verizon. Replays of the teleconference will be available at 1:00 p.m. ET/10:00 a.m. PT via a toll-free call at 1-888-484-8256 and at 1-203-369-3737 for international callers.

About MTV Networks
MTV Networks, a unit of Viacom (NYSE: VIA, VIA.B), is one of the world's leading creators of programming and content across all media platforms. MTV Networks, with more than 137 channels worldwide, owns and operates the following television programming services - MTV: MUSIC
TELEVISION, MTV2, VH1, mtvU, NICKELODEON, NICK at NITE, COMEDY CENTRAL, TV LAND, SPIKE TV, CMT, NOGGIN, VH1 CLASSIC, LOGO, MTVN INTERNATIONAL and THE DIGITAL SUITE FROM MTV NETWORKS, a package of 13 digital services, with all of these networks trademarks of MTV Networks. MTV Networks connects with its audiences through its robust consumer products businesses and its more than 260 interactive properties worldwide, including online, broadband, wireless and interactive television services and also has licensing agreements, joint ventures, and syndication deals whereby all of its programming services can be seen worldwide.

About RealNetworks
RealNetworks, Inc. brings digital entertainment to consumers on every screen. Real's heritage of delivering groundbreaking digital entertainment products and services includes creation of the streaming media category with the introduction of RealAudio in 1995. Since then, Real has continued to be a leading force in the market, pioneering products and services that include: RealPlayer, the first mainstream media player that lets consumers download and record Internet video; the acclaimed Rhapsody digital music service, which serves up more than 1 billion songs per year; RealArcade, one of the largest casual games destinations online; and a variety of mobile entertainment services, such as ringback tones, offered to consumers through leading mobile operators around the world. RealNetworks' corporate information is located at www.realnetworks.com/company.

About Verizon Wireless
Verizon Wireless operates the nation's most reliable wireless voice and data network, serving more than 62.1 million customers. The largest U.S. wireless company and largest wireless data provider, based on revenues, Verizon Wireless is headquartered in Basking Ridge, N.J., with 67,000 employees nationwide. The company is a joint venture of Verizon Communications (NYSE: VZ) and Vodafone (NYSE and LSE: VOD). Find more information on the Web at http://www.verizonwireless.com. To preview and request broadcast-quality video footage and high-resolution stills of Verizon
Wireless operations, log on to the Verizon Wireless Multimedia Library at
http://www.verizonwireless.com/multimedia.

Forward Looking Statements:
This press release contains forward-looking statements that involve risks and uncertainties, including statements relating to: the creation and future growth of a compelling digital music service by Rhapsody America; customer acceptance and adoption of the Rhapsody America service; the impact of MTV Networks' marketing support on the Rhapsody America service; and the launch and integration of the Rhapsody America service with Verizon's music service. Actual results may differ materially from the results predicted. Factors that could cause actual results to differ from the results predicted include: development and consumer acceptance of digital music services generally, including the adoption of mobile phones as a music platform, and Rhapsody America's service in particular because these are relatively new and unproven business models and markets; the emergence of new entrants and competition in the market for digital music services; risks inherent in strategic relationships, especially with competitors, including the formation of Rhapsody America and the related transaction and commercial agreements with MTV Networks, and technology and service integration efforts, as well as risks specifically associated with the combination of Real's Rhapsody service and MTV Network's URGE service; and risks relating to the ability of Real's strategic partners, including MTV Networks, to generate subscribers for Real's digital content services. More information about potential risk factors that could affect RealNetworks' business and financial results is included in RealNetworks' annual report on Form 10-K for the most recent year ended December 31, and its quarterly reports on Form 10-Q and from time to time in other reports filed by RealNetworks with the Securities and Exchange Commission. The Company assumes no obligation to update any forward-looking statements or information, which are in effect as of their respective dates.

# # #

While Amazon isn't acquiring AmieStreet, the "Series A" financing it's providing—accountants in the crowd, that means what in English?—shows it has a definite interest in the startup, whose model would fit in quite nicely with Amazon's own recommendation system. It'd add some much needed spark to their digtal music store, which isn't really anything special right now.

Obviously, there'd have to be some changes to the pricing structure for major labels to go along with it. But Amazon would stand a better chance of negotiating this kind of setup than other stores—it's an internet retail powerhouse, but the labels don't fear it like they do iTunes, whose dominating marketshare is unnerving enough they wouldn't mind helping to chip away at it. [CNNMoney via /.]

The MP3-only move is an obvious swipe at Apple, who is offering their DRM-free tracks in AAC. (Jeff Bezos: "Our MP3-only strategy means all the music that customers buy on Amazon is always DRM-free and plays on any device.")

Of course, a real swipe at Apple would be to offer the tracks for 99 cents, undercutting them by roughly 25 percent, but no price or launch date was mentioned by Amazon. Of course, you'll know when we do. Regardless, the music download market's starting to get real interesting.

Let's just hope Amazon has the balls to take it up a notch. Or rather, down a notch. 99 cents. Come on, guys, make yourselves a real competitor against iTunes and kick-start the market. The sooner we get this going, the better for all of us: consumers, distributors, the industry, and the artists.

Update: According to a rep, neither pricing nor other labels will be announced until launch "later this year." Looks like an end-of-the-month, surprise head-to-head showdown with Apple is out of the cards, so Amazon better have something slammin' up their sleeve with the lead time iTunes is going to have on them. – Matt Buchanan

Press Release [Amazon]

As fans of the hallowed Frog Design (or, if you prefer the k.d. lang version, "frog design") we were stoked to hear that Alltel used them to design the user interface for the music store. Frog had previously designed a "cell top" interface for an Alltel-powered Samsung u520. Now it seems it's extending that aesthetic to the desktop, as you can see above.

Design cred aside, the Jump Music software is cool because it provides a storefront to eMusic, the DRM-free music store that reminds us every so often that it is second only to iTunes in downloaded songs. (And you get 35 free tracks for joining, as opposed to eMusic's customary 25 free tracks.)

The software will manage your existing MP3s, and allow you to sort and transfer tracks to phones including the LG AX8600, MOTOKRZR K1m, MOTORAZR V3m, The Wafer by Samsung and the aforementioned u520. It doesn't look comprehensive enough to be some kind of full replacement for iTunes (or, for that matter, Windows Media Player or any other manager you prefer). And yes, I know that every carrier and most handset makers have some sort of PC client software, generally designed to keep you from easily putting anything you want on the phone.

But somehow this feels different—like there's an independent spirit alive in this particular marketing scheme. Am I wrong or right? Well, Alltel says it has 12 million members. If one of you is reading this, please download the software, futz around with it, and report back. Worse thing that happens is that you get stuck with 35 free MP3s and a quick uninstall. – Wilson Rothman

Alltel Wireless launches Jump Music

Free, easy-to-use software helps customers transform wireless phones into mobile music players

LITTLE ROCK, Ark.—Alltel Wireless, America's largest network, today launched Jump Music, a free and easy-to-use software that enables customers to transfer compatible music files from personal computers to their wireless phones.

The PC-based Jump Music application gives Alltel Wireless customers greater control over their mobile music experience, empowering them to find, manage and easily transfer music files with the simple click of a button.

"For those who have been waiting for an easy way for customers to put music on their phones—Jump Music is it," said Wade McGill, senior vice president of wireless products for Alltel. "Jump Music makes it incredibly simple for our customers to take their music with them anywhere they go, and it demonstrates our commitment to providing customers choice and control over their wireless experience."

Jump Music, developed by strategic-creative consultancy frog design, is available for download at www.alltel.com/jumpmusic. The site features a user-friendly interface and enables customers to easily navigate to eMusic—one of the world's largest online music stores—where they can purchase additional music from eMusic's vast catalog of more than 2.5 million tracks in the DRM-free MP3 format. New Jump Music users will also enjoy a special introductory offer of 35 free eMusic tracks.

Jump Music is initially compatible with five Alltel phones: the LG AX8600, MOTOKRZR K1m and MOTORAZR V3m, and the Samsung u520 as well as The Wafer by Samsung.

Jump Music Accessory Kits, featuring a 256 MB memory card, USB cable and a stereo headset, are available at Alltel Wireless retail stores or online at www.shopalltel.com for just $49.99.

Alltel Wireless offers exclusive features including "My Circle," allowing customers to choose who they call for free—any 10 numbers, any network; Anytime Plan Changes, giving customers the flexibility to change their rate plan any time, without extending their contract; and Celltop, a patent-pending technology that offers customers an easier way to access, manage and organize a wide range of information already available on their phones.

Alltel (NYSE: AT) is owner and operator of the nation's largest wireless network and has 12 million customers. For more information about Alltel, please visit www.alltel.com.

Download link [Alltel]

You can't use the tracks as a ringtones, however, even on the UpStage, a music phone, which is patently ridiculous. Still, it's a great move nonetheless, and could actually get people to use their phones as music devices—the whole disruptive potential is in grabbing tracks whenever, wherever, but before it was prohibitively expensive. Now that the price is reasonable people might finally take advantage.

Sprint's also rolling out two new music-oriented unlimited data plans in April: Power Vision Access and Power Vision Music. Bullet points after the jump.

Power Vision Access ($15 a month):

* 10 commercial-free radio channels from Sprint Radio, powered by mSpot
* exclusive video programming from Sprint Power View, including a weekly top-song countdown, breaking music news, tour information and artist interviews and performances and
* songs at $ 0.99 each from the Sprint Music Store.

* another 40 channels of commercial-free radio channels from Sprint Radio (for a total of 50),
* a channel from Sprint TV that features music videos, powered by MobiTV, including hip-hop, rock and alternative as well as flashbacks from the 80s and 90s and
* songs at $ 0.99 each from the Sprint Music Store.

Press Release [Sprint]

Like any good border policy though, this has created its own smugglers' economy, where foreign prepaid iTunes Cards are trafficked to, from, and in between different countries using a variety of routes and methods. You can't stop the tunes, man, you just can't stop 'em. – Matt Buchanan

The insanely great songs Apple won't let you hear [Slate]

The Xmod works by upconverting the digital music using Creative's X-Fi CMSS-3D technology. Here's the kicker: the Xmod "restores" part of the audio information that was originally stripped in order to make the lossy music file. So we're led to believe that the Xmod generates missing information on its own. Laptop seems to think it does, everything from Lauren Hill to Queen. Quite an eclectic bunch they've got over there.

The Xmod is still scheduled to be released later this month for $80.The urge to call "shenanigans" on this product is so immense right now. – Nicholas Deleon

Creative Introduces the Xmod [Laptop Magazine]

If nothing else, you can use the Samsung X838 as part of your one-man show. – Nicholas Deleon

Samsung X838 (in Chinese) [PhoneDaily via Akihabara News ]

All that, and still no word on price or availability. – Nicholas Deleon

LG Reveals VX-8600 [Phone Scoop via New Launches]

LG L600V - a GSM/UMTS clamshell with Bluetooth [Mobile-review.com]

The Samsung A720's release date is still unknown. – Nicholas Deleon

FCC Documentation [FCC via Slashphone]

Samsung E908 (in Chinese) [PhoneDaily via New Launches]

Peep Show: Verizon LG VX8500 Chocolate phone [Gadgetell]

The MiKo is a 64-bit Dual Core processor-powered media hub based on Windows XP. Open Labs basically went on a shopping spree, and included the top of the line everything into the MiKo, including its graphics card and the components that make up its rather beefy, 7.1-channel sound system. A 1TB hard drive includes enough space for plenty of multimedia files, and the built-in dual layer DVD burner assists with video authoring. Of course, it's got all the important network connections as well, with an Ethernet port and built-in Wi-Fi. For the more specialized parts, Open Labs says they've created the drivers from scratch, thereby improving reliability.

The 15-inch LCD touchscreen makes perfect sense for the MiKo. There's a customized GUI available, but the familiar Windows XP interface is only a click away should you prefer Fisher-Price. Since the MiKo is designed with an eye toward DJs, the touchscreen makes using all that crazy DJ mixing software all the more easy. Throw in the built-in, fully functioning musical keyboard (or any other MIDI instrument you plug in for that matter) and you're all set to create the next great Euro chart topper.

The MiKo's support of HD content is also impressive, as its able to handle multiple HD streams simultaneously (while mixing a song, editing sound loops, etc.).

In essence, the Open Labs MiKo is just really fun. I suppose it's nearly powerful enough to model the weather, but odds are you'll be too busy pretending to be Gabriel & Dresden (the current "it" guys in trance music) to do any of that. It's on sale now on Open Labs' Web site for $2,499. – Nicholas Deleon

Product Page [Open Labs]

Perhaps even more interesting is the fact that Simpson's record label is Sony BMG. Going from releasing rootkit-laden CDs to DRM-free MP3s is quite a metamorphosis. Should Yahoo! further thumb its nose at the music industry, we'll let you know. In the meantime, let's all rock out to Jessica Simpson, the greatest singer in human history. – Nicholas Deleon

US Yahoo offers copy-free music [BBC News]

The Intempo iFi isn't exactly cheap: it can be found online for around $425 depending on where you shop. – Nicholas Deleon

Product Page [Intempo via Gadget Candy]

Hope you like the color, because that's all it's available in. – Nicholas Deleon

Product Page [Grundig via The Red Ferret Journal]

The included FM tuner lets you tune into FCC-regulated terrestrial radio and the battery should last about 14 hours, which is more than generous. Also of note, especially for all those kids heading off to college in the next few months, is that the Philips includes a built-in voice recorder. Just give it to your buddy so he can record lecture—no need to fight off that hangover in class!

Expect it in July for $200. – Nicholas Deleon

Product Page [Philips via Everything USB]

The Aiwa headphones support a variety of digital audio formats other than MP3, including WMA and AAC, which is good news for people using iTunes to rip their music. You can find it online for anywhere from about $50 to more than $165, so it's advisable to shop around. – Nicholas Deleon

Product Page [Aiwa via Tech Digest]

We've reported on some of the equipment before–the DVJ-X1, for example. Other featured models were the DJM-400 two-channel mixer, the CDJ-1000MK3 and MK2 CD turntables, the DJM-800 mixer and the CDJ-200. When their powers combined, the room was officially bopping.

As you might know, the DVJ-X1 is a video remixer of sorts, letting DJs or DJ wannabees scratch, rewind and fast-forward DVD video as techno music fills the room. Seeing the European-sounding house DJ scratch live was a quite a sight.

Pioneer is trying to straddle the market between the pros and the amateurs, with the high-end pro equipment, like the aforementioned DVJ-X1, costing in the thousands of dollars, while equipment like the DJM-400 running only into the hundreds.

Should your rave get busted, however, don't blame us for any fines you incur. – Nicholas Deleon

Pioneer

Sondigo is the latest company to offer such a device with its Sirocco Wireless Audio Bridge. Once integrated into your 802.11b/g network (and because the Sirocco relies on the company's custom Wi-Sonic technology, it's only compatible with Windows PCs), it can stream all sorts of audio, including purchased iTunes music, to your home theater system, or anywhere else you can plug an optical audio cable into. The Sirocco acts as a sort of middleman between your PC, wireless router and speakers. Quite easy, but at the same time, it's quite simple, performing only that one function.

The Sirocco Wireless Audio Bridge is available now for $140. Act now and you can be ushered back into 2003, when everyone was still impressed with WiFi. – Nicholas Deleon

Product Page [Sondigo via The Red Ferret Journal]

Allofmp3.com offers DRM-free songs in a variety of file formats to its users. Unlike the iTunes Music Store, which charges by the song, Allofmp3 charges by the megabyte, meaning that users often get much more bang for their buck, so to speak. Now, it seems that American negotiators are playing hardball with Russian officials, saying, in essence, that for them to join the WTO, they need to shut down Allofmp3.com. The Web site has operated in somewhat murky waters due to quirks in Russia's copyright laws and maintains that it is 100% legal...in Russia for Russians. Whether or not little Johnny in Oklahoma can legally use the site is still a little hazy.

The WTO is a international organization that sort of regulates international trade. So if you're a country, you want to get into the WTO because of all the neat benefits. Stay tuned for all the exciting developments. – Nicholas Deleon

US to Russia: shutter music site if you want to join the WTO [Ars Technica]

The Exstreamer 100 really excels at streaming MP3s, seeing as though that's all it does. Once connected to your home network, the Exstreamer will stream MP3s, as well as G.711 and PCM files over Cat.5 cable. Since the Exstreamer is now lead-free, it can make its long-awaited EU debut. Move over Hasselhoff, there's a nice European star in town.

An IR remote control is sold separately, but the $195 Extsreamer can be controlled via a Web interface, so all hope of running this bleeding edge technology is not lost. – Nicholas Deleon

Product Page [SMARTHOME via The Red Ferret Journal]

UPDATE: Rather than pass the buck, let me announce to the world that I am indeed blind. The Exstreamer 100 is not wireless, but wired, which makes perfect sense for 2006. The rest of the above still applies, but, you know, with with wires. Thanks to Claus Hingebjerg for pointing out the folly of my ways.

Product Information (in Japanese) [Sharp via Akihabara News]

French look to open iTunes to other music players [C|Net News.com] via French tell Apple to open iTunes [The Inquirer]

Not much information out now, but looks like Bill Gates has reached an agreement with MTV Networks to go up against iTunes with a joint digital music service. Very succinctly called Urge, the service will be out sometime next year and will be integrated into a version of Microsoft's Windows Media Player. Urge is said to include more than 2 million downloadable songs, and of course, downloadable MTV content.

MTV, Microsoft team up for digital music service [Reuters]